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GM’s suppliers to get paid every week
GM’s suppliers to get paid every week
Posted Thursday, Sep 24, 2009, 3:59 pm in Employee News
General Motors told suppliers this morning it plans to begin paying them every week, instead of every month—a move that will likely help suppliers who have been cash-strapped during the recession, the Detroit Free Press reported.
The change affects about 1,400 direct suppliers and 300 logistics suppliers, the paper said. Dan Flores, a GM spokesman, said the new system should reduce cash volatility for both GM and suppliers, the Free Press said.
Under the current system, GM pays its suppliers on a monthly basis, an average of 47 days after materials are delivered, the paper noted. The new system will continue the average 47-day lag time but will mean suppliers get payments every Tuesday, according to Flores, the story said. (Detroit Free Press)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
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